The
petitioner, who was the former machine operator of respondent New Age Graphics
Inc. (Graphics, Inc.), files this petition for review under Rule 45 of the
Rules of Court of the Decision[1]dated June 9, 2009 and Resolution[2]dated April 14, 2010 of the Court of
Appeals (CA) in CA-G.R. SP No. 106928.By
way of its June 9, 2009 Decision, the CA reversed and set aside the March 31,
2008 Decision[3]
and October 28, 2008 Resolution[4]
of the National Labor Relations Commission (NLRC) in NLRC LAC No. 10-002759-07
affirming the August 15, 2007 Decision[5]
of Labor Arbiter Danna M. Castillon (LA Castillon), which found the petitioner
to be illegally dismissed.

The
CA exonerated the petitioner from the charges of destroying Graphics, Inc.’s
property and disloyalty to Graphics, Inc. and its objectives.However, the CA ruled that the petitioner’s
unjustified refusal to render overtime work, unexplained failure to observe
prescribed work standards, habitual tardiness and chronic absenteeism despite
warning and non-compliance with the directive for him to explain his numerous unauthorized
absences constitute sufficient grounds for his termination.Specifically:

On the ground of
repeated violations of company’s rules and regulations, namely:
insubordination, deliberate slowdown of work, habitual tardiness, absence
without official leave and inefficiency; We find that public respondent
commission, in affirming labor arbiter Castillon, rushed into conclusion that
petitioner has failed to convince the commission a quo on what company rules and regulations private respondent had
committed.x x x

The foregoing,
notwithstanding, we find that private respondent should be dismissed on the
ground of willful disobedience of the warning and memoranda issued by
petitioner.To be validly dismissed on
the ground of willful disobedience requires the concurrence of at least two
requisites: (1) the employee’s assailed conduct must have been willful or
intentional, the willfulness being characterized by a wrongful and perverse
attitude; and (2) the order violated must have been reasonable, lawful, made
known to the employee and must pertain to the duties which he had been engaged
to discharge.

Private
respondent’s continued refusal to acknowledge receipt and to present his
defense against the notice of suspension and of dismissal, render him guilty of
insubordination or willful disobedience of the reasonable and lawful order of petitioner.These orders were made with [regard] to his
duties to the company as a punctual employee and as the sole and exclusive
operator of the printing machine provided to him by petitioner.Therefore, the obligation to answer rests
upon him who is alleged to have committed infractions against his employer,
otherwise he is deemed to have waived his right to be heard and would be made
to suffer the consequences of such refusal.

Private
respondent is also accused of insubordination for the reason that he stubbornly
refused to follow the orders of his General Manager to show the latter and
check on the computer using the CMYK guide, whether the colors he is running in
his printing machine are correct.After
initially following the said order, and confirming that the first color, cyan,
running in the machine was correct, he failed to observe the same procedure on
the second color magenta and did not even bother to remedy it after it was
pointed out by the Computer Graphic Artist supervising him.Since this was not the first time he was
reprimanded for carelessly rushing the work assigned to him, disregarding
certain procedures to ensure the quality of the same and thereby resulting in
mediocre products which earn the ire of the company’s clientele, his stubborn
refusal to change shows a clear act of insubordination against private
respondent.

x x x

Private
respondent has pending work on La Salleño Magazine on May 25-26, 2004, but
refused to do overtime in order to finish the same.Aside from this, he has two other works
required for him to finish, mainly: PCU-Manila Brochure and Hijas de Maria
souvenir program.In procuring absences
during the times when workload was heavy, the printing deadlines for the months
of April and May were not met and petitioner incurred losses from overtime pay
for the other employees who were forced to take on the work left by private
respondent and from penalties imposed by clients for every day of delay after
the deadlines set for the delivery of the printed materials.

x x x

Furthermore,
private respondent’s refusal to render overtime work when required upon him,
contributed to losses incurred by the petitioner.Public respondent commission has erred in
ruling that rendition of the same is not mandatory.Art. 89 of the Labor Code empowers the
employer to legally compel his employees to perform overtime work against their
will to prevent serious loss or damage, to wit:

x x x x

In the present
case, petitioner’s business is a printing press whose production schedule is sometimes
flexible and varying.It is only
reasonable that workers are sometimes asked to render overtime work in order to
meet production deadlines.

On or before May
26, 2004, private respondent was asked to render overtime work but he refused
to do so despite the “rush” orders of customers and petitioner’s need to meet its
deadlines set by the former.In fact, he
reneged on his promise to do the same, after being issued an Overtime Slip Form
by Mylene Altovar, and instead went out with another individual, as attested by
his wife after calling the company to inform it of such absence.He knew that he was going to be unavailable
for work on the following day, but instead of trying to finish his work before
that date by rendering overtime, due to the “rush” in meeting the deadlines, he
opted to forego with the same, and thereby rejecting the order of petitioner.

x x x

Petitioner
further alleges habitual tardiness on the part of private respondent for which
he received a warning notice in April and May 2004.For the month of January and February 2004
alone, he reported late for work 23 times and on May 2004, just prior to his
suspension, he was yet again late for 6 times.The Daily Time Records of private respondent contained the entries which
[were] personally written by him.x x x

Finally, on
petitioner’s allegation on private respondent’s absences without official
leave, We hold that the latter’s actions were indeed unjustified.Despite the warning issued to private respondent
by petitioner on his AWOLs during the month of April and May, and instead of
reporting to the company to deny or to refute the basis for recommendation of
dismissal, he absented himself from Jun. 15 to Jul. 15, 2004, which prompted to
(sic) the termination of his employment.The ruling of the labor arbiter that since the final recommendation of
petitioner was “dismissal for cause”, private respondent cannot be faulted for
his failure to report for work on Jun. 15 does not hold water.What was given to private respondent on Jun.
15, 2004 was indeed in the form of a notice of dismissal.However, it was only recommended that he be
dismissed from his employment and is still given the opportunity to present his
defense to deny or refute the said recommendation of company.[6]x x x (Citations omitted)

Nonetheless,
while the CA recognized the existence of just causes for petitioner’s
dismissal, it found the petitioner entitled to nominal damages in the amount of
P5,000.00 due to Graphics, Inc.’s failure to observe the procedural
requirements of due process.

Private
respondent was not accorded due process when petitioner issued and served to
the former the written notice of dismissal dated Jun. 15, 2004.A careful perusal of the records will show
that the notice issued by the employer gives the employee only twenty-four (24)
hours to answer and put up his defenses against the accusations laid upon him
by the company, in contravention with the rule of a “reasonable” period as
construed in King of Kings Transport v.
Mamac.Moreover, the scheduled
hearing in front of Leticia D. Lago was on the same date at 1:00 p.m., which
left private respondent with no recourse to secure the services of a counsel,
much less prepare a good rebuttal against the alleged evidences for the valid
dismissal of the former.

x x x x

x x x Considering
that petitioner has made efforts in the past to afford private respondent the
opportunity to be able to defend himself, but the latter, instead of availing
such remedy, rejected the same; We have taken this into consideration, and
impose [P]5,000.00 as the penalty for the employer’s failure to comply
with the due process requirement.[7]
(Citations omitted)

This Court finds no cogent reason to
reverse the assailed issuances of the CA.

First,
the petitioner’s arbitrary defiance to Graphics, Inc.’s order for him to render
overtime work constitutes willful disobedience.Taking this in conjunction with his inclination to absent himself and to
report late for work despite being previously penalized, the CA correctly ruled
that the petitioner is indeed utterly defiant of the lawful orders and the
reasonable work standards prescribed by his employer.

This
particular issue is far from being novel as this Court had the opportunity in R.B. Michael Press v. Galit[8]to categorically state that an employer
has the right to require the performance of overtime service in any of the
situations contemplated under Article 89 of the Labor Code and an employee’s
non-compliance is willful disobedience.Thus:

For willful
disobedience to be a valid cause for dismissal, these two elements must concur:
(1) the employee’s assailed conduct must have been willful, that is,
characterized by a wrongful and perverse attitude; and (2) the order violated
must have been reasonable, lawful, made known to the employee, and must pertain
to the duties which he had been engaged to discharge.

In the present case,
there is no question that petitioners’ order for respondent to render overtime
service to meet a production deadline complies with the second requisite.Art. 89 of the Labor Code empowers the
employer to legally compel his employees to perform overtime work against their
will to prevent serious loss or damage:

Art. 89. EMERGENCY
OVERTIME WORK

Any employee may be required
by the employer to perform overtime work in any of the following cases:

x x x x

(c) When there is
urgent work to be performed on machines, installations, or equipment, in order
to avoid serious loss or damage to the employer or some other cause of similar
nature;

x x x

In the present case,
petitioners’ business is a printing press whose production schedule is sometimes
flexible and varying.It is only
reasonable that workers are sometimes asked to render overtime work in order to
meet production deadlines.

x x x

The issue now is,
whether respondent’s refusal or failure to render overtime work was willful;
that is, whether such refusal or failure was characterized by a wrongful and
perverse attitude. In Lakpue Drug Inc. v. Belga, willfulness was
described as "characterized by a wrongful and perverse mental attitude
rendering the employee’s act inconsistent with proper subordination."The fact that respondent refused to provide
overtime work despite his knowledge that there is a production deadline that
needs to be met, and that without him, the offset machine operator, no further
printing can be had, shows his wrongful and perverse mental attitude; thus,
there is willfulness.

Respondent’s excuse
that he was not feeling well that day is unbelievable and obviously an
afterthought.He failed to present any
evidence other than his own assertion that he was sick.Also, if it was true that he was then not
feeling well, he would have taken the day off, or had gone home earlier, on the
contrary, he stayed and continued to work all day, and even tried to go to work
the next day, thus belying his excuse, which is, at most, a self-serving
statement.

After a
re-examination of the facts, we rule that respondent unjustifiably refused to
render overtime work despite a valid order to do so.The totality of his offenses against
petitioner R.B. Michael Press shows that he was a difficult employee.His refusal to render overtime work was the
final straw that broke the camel’s back, and, with his gross and habitual
tardiness and absences, would merit dismissal from service.[9]
(Citations omitted)

Noticeably, this case and R.B. Michael Press share a parallelism.
Similar to the dismissed employee in the above-quoted case, the petitioner exhibited
willful disobedience to a reasonable order from his employer and this Court
does not find any reason why petitioner should be accorded a different
treatment.

Second,
the petitioner’s failure to observe Graphics, Inc.’s work standards constitutes
inefficiency that is a valid cause for dismissal.Failure to observe prescribed standards of
work, or to fulfill reasonable work assignments due to inefficiency may constitute
just cause for dismissal.Such
inefficiency is understood to mean failure to attain work goals or work quotas,
either by failing to complete the same within the alloted reasonable period, or
by producing unsatisfactory results.As
the operator of Graphics, Inc.’s printer, he is mandated to check whether the
colors that would be printed are in accordance with the client’s specifications
and for him to do so, he must consult the General Manager and the color guide
used by Graphics, Inc. before making a full run.Unfortunately, he failed to observe this
simple procedure and proceeded to print without making sure that the colors
were at par with the client’s demands.This
resulted to delays in the delivery of output, client dissatisfaction, and
additional costs on Graphics, Inc.’s part.

Security of tenure is indeed
constitutionally guaranteed.However, this
should not be indiscriminately invoked to deprive an employer of its management
prerogatives and right to shield itself from incompetence, inefficiency and
disobedience displayed by its employees.The procedure laid down by Graphics, Inc. which the petitioner was bound
to observe does not appear to be unreasonable or unnecessarily difficult.On the contrary, it is necessary and relevant
to the achievement of Graphics, Inc.’s objectives.The petitioner’s non-compliance is therefore
hard to comprehend.

While
a penalty in the form of suspension had already been imposed on the petitioner
for his habitual tardiness and repeated absenteeism, the principle of “totality
of infractions” sanctions the act of Graphics, Inc. of considering such
previous infractions in decreeing dismissal as the proper penalty for his
tardiness and unauthorized absences incurred afterwards, in addition to his
refusal to render overtime work and conform to the prescribed work
standards.In Merin v. National Labor Relations Commission,[10]
this Court expounded on the principle of totality of infractions as follows:

The totality of
infractions or the number of violations committed during the period of
employment shall be considered in determining the penalty to be imposed upon an
erring employee.The offenses committed
by petitioner should not be taken singly and separately.Fitness for continued employment cannot be
compartmentalized into tight little cubicles of aspects of character, conduct
and ability separate and independent of each other.While it may be true that petitioner was
penalized for his previous infractions, this does not and should not mean that
his employment record would be wiped clean of his infractions.After all, the record of an employee is a
relevant consideration in determining the penalty that should be meted out
since an employee's past misconduct and present behavior must be taken together
in determining the proper imposable penalty[.]Despite the sanctions imposed upon petitioner, he continued to commit misconduct
and exhibit undesirable behavior on board.Indeed, the employer cannot be compelled to retain a misbehaving
employee, or one who is guilty of acts inimical to its interests.[11]
(Citations omitted)

This
Court cannot condone the petitioner’s attempt to belittle his habitual
tardiness and absenteeism as these are manifestation of lack of initiative,
diligence and discipline that are adverse to Graphics, Inc.’s interest.In Challenge
Socks Corporation v. Court of Appeals,[12]
this Court said that it
reflects an indifferent attitude to and lack of motivation in work.It is inimical to the general productivity
and business of the employer.This is
especially true when it occurred frequently and repeatedly within an extensive
period of time and despite several warnings.

This Court cannot likewise agree to the
petitioner’s attempt to brush aside his refusal to render overtime work as
inconsequential when Graphics, Inc.’s order for him to do so is justified by Graphics,
Inc.’s contractual commitments to its clients.Such an order is legal under Article 89 of the Labor Code and the petitioner’s
unexplained refusal to obey is insubordination that merits dismissal from
service.

The
petitioner harped on the improper motivations of Graphics, Inc. in ordering his
dismissal, primary of which was the complaint he filed before the Department of
Labor and Employment that eventually led to the finding of violations of laws
on labor standards and tax regulations.However,
the petitioner fails to convince that he is not the incorrigible employee
portrayed by the evidence presented by the respondents.The petitioner does not deny that he had been
habitually tardy and absent and continued being so even after he had been warned
and thereafter suspended.Neither does he
deny that he refused to render overtime work and that Graphics, Inc. had a
legally acceptable reason for requiring him to do so.The petitioner can only argue that his
refusal is not tantamount to willful disobedience, which of course, is
disagreeable. In fact, the petitioner’s refusal
despite knowledge that his regular presence at work and extended hours thereat
on some occasions were necessary for Graphics, Inc. to meet its obligations to its
clients does not only suggest willfulness on his part but even bad faith.On the other hand, the petitioner only
proffers a general denial of the claim that Graphics, Inc. earned the ire of
its clients due to the defective output resulting from the petitioner’s failure
to comply with the prescribed work standards.

Even
assuming as true the petitioner’s claim that such complaint gave rise to
ill-feelings on Graphics, Inc.’s part, he cannot reasonably and validly suggest
that the respondents have stripped themselves of the right to dismiss him for
his deliberate disobedience and lack of discipline in regularly and punctually
reporting for work.

Undoubtedly,
Graphics, Inc. complied with the substantive requirements of due process in
effecting employee dismissal.However,
the same cannot be said insofar as the procedural requirements are
concerned.In King of Kings Transport, Inc. v. Mamac,[13]
this Court laid down the manner by which the procedural due requirements of due
process can be satisfied:

To clarify, the
following should be considered in terminating the services of employees:

(1)The first
written notice to be served on the employees should contain the specific
causes or grounds for termination against them, and a directive that the
employees are given the opportunity to submit their written explanation within
a reasonable period."Reasonable
opportunity" under the Omnibus Rules means every kind of assistance that
management must accord to the employees to enable them to prepare adequately
for their defense.This should be
construed as a period of at least five (5) calendar days from receipt of the
notice to give the employees an opportunity to study the accusation against
them, consult a union official or lawyer, gather data and evidence, and decide
on the defenses they will raise against the complaint.Moreover, in order to enable the employees to
intelligently prepare their explanation and defenses, the notice should contain
a detailed narration of the facts and circumstances that will serve as basis
for the charge against the employees.A
general description of the charge will not suffice.Lastly,
the notice should specifically mention which company rules, if any, are
violated and/or which among the grounds under Art. 282 is being charged against
the employees.

(2)After serving the first notice, the employers should
schedule and conduct a hearing or conference wherein the employees will
be given the opportunity to: (1) explain and clarify their defenses to the
charge against them; (2) present evidence in support of their defenses; and (3)
rebut the evidence presented against them by the management.During the hearing or conference, the
employees are given the chance to defend themselves personally, with the
assistance of a representative or counsel of their choice.Moreover, this conference or hearing could be
used by the parties as an opportunity to come to an amicable settlement.

(3) After
determining that termination of employment is justified, the employers shall
serve the employees a written notice of
termination indicating that: (1) all circumstances involving the charge
against the employees have been considered; and (2) grounds have been
established to justify the severance of their employment.[14]

As
correctly observed by the CA, Graphics, Inc. failed to afford the petitioner
with a reasonable opportunity to be heard and defend itself.An administrative hearing set on the same day
that the petitioner received the memorandum and the twenty-four (24) – hour
period for him to submit a written explanation are far from being reasonable.

Furthermore, there is no indication
that Graphics, Inc. issued a second notice, informing the petitioner of his
dismissal.The respondents admit that Graphics,
Inc. decided to terminate the petitioner’s employment after he ceased reporting
for work from the time he received the memorandum requiring him to explain and
subsequent to his failure to submit a written explanation.However, there is nothing on record showing
that Graphics, Inc. placed its decision to dismiss in writing and that a copy
thereof was sent to the petitioner.

Notably, the respondents do not
question the findings of the CA.The respondents
chose not to convince this Court otherwise by not filing an appeal, which
reasonably suggests that Graphics, Inc.’s failure to comply with the procedural
requirements of due process is admitted.

Nonetheless,
while the CA finding that the petitioner is entitled to nominal damages as his
right to procedural due process was not respected despite the presence of just
causes for his dismissal is affirmed, this Court finds the CA to have erred in
fixing the amount that the Company is liable to pay.The CA should have taken cognizance of the
numerous cases decided by this Court where the amount of nominal damages was
fixed at P30,000.00 if the dismissal was for a just cause.One of such cases is Agabon v. National Labor Relations Commission,[15]
on which the CA relied in the Assailed Decision and was reiterated in Genuino v. National Relations Commission[16]as follows:

In view of
Citibank's failure to observe due process, however, nominal damages are in
order but the amount is hereby raised to PhP 30,000 pursuant to Agabon v.
NLRC.The NLRC's order for payroll
reinstatement is set aside.

In Agabon, we
explained:

The violation of the
petitioners' right to statutory due process by the private respondent warrants
the payment of indemnity in the form of nominal damages.The amount of such damages is addressed to
the sound discretion of the court, taking into account the relevant
circumstances.Considering the
prevailing circumstances in the case at bar, we deem it proper to fix it at [P]30,000.00.We believe this form of damages would serve
to deter employers from future violations of the statutory due process rights
of employees.At the very least, it
provides a vindication or recognition of this fundamental right granted to the
latter under the Labor Code and its Implementing Rules.

Thus, the award of
PhP 5,000 to Genuino as indemnity for non-observance of due process under the
CA's March 31, 2000 Resolution in CA-G.R. SP No. 51532 is increased to PhP
30,000.[17]

WHEREFORE,
premises considered, the petition is DENIED.The Decision of the Court of Appeals in
CA-G.R. SP No. 106928 is AFFIRMED with
MODIFICATION in that respondent New
Age Graphics, Inc. is hereby ordered to pay petitioner Billy M. Realda nominal
damages in the amount of Thirty Thousand Pesos (P30,000.00).

SO ORDERED.

BIENVENIDO L. REYES

Associate Justice

WE CONCUR:

ANTONIO
T. CARPIO

Associate Justice

Chairperson

ARTURO D. BRION

Associate Justice

JOSE PORTUGAL PEREZ

Associate Justice

MARIA
LOURDES P. A.
SERENO

Associate Justice

A T T E S T A T I O N

I attest that the conclusions in the
above Resolution had been reached in consultation before the case was assigned
to the writer of the opinion of the Court’s Division.

ANTONIO T.
CARPIO

Associate
Justice

Chairperson,
Second Division

C E R T I F I C A T I O N

Pursuant to Section 13, Article VIII
of the Constitution and the Division Chairperson's Attestation, I certify that
the conclusions in the above Resolution had been reached in consultation before
the case was assigned to the writer of the opinion of the Court’s Division.